What it means to have financial freedom as an entrepreneur
Emma McQueen (GAICD)
Results-focused coach for female business owners ? Double your revenue and get paid what you’re worth ? Director ? Author of Go-getter
Financial Freedom is something we all want as entrepreneurs - but what does it actually mean?
We pour our time and money into the goal of financial freedom, but it can be difficult to achieve if we don’t work out what that looks like for us.
Don’t worry though, it is possible!
I’ve worked with countless women who’ve taken this journey and made their goals a reality. So let's explore what financial freedom truly means and how we can achieve it.
One of your first steps when transitioning to entrepreneurship should be having open and honest financial conversations, both at home and in your business.
When I was starting out, my husband and I sat down to discuss our family's financial needs.?You need to have these conversations too!
Sit down and work out how much you need to contribute to the family and to your personal and business goals. Finding these numbers can be daunting but until you have them, you’ll be operating in the dark.
Running your own business often means your income level fluctuates from month to month, or as I like to call it, 'lumpy cash flow'. We can’t fight it, so we need to accept it and plan strategically.
One great option is establishing a stable income stream (like monthly recurring revenue), but that’s not possible for all businesses.
Something every business can do though, is to build a financial buffer to protect yourself during lean months. This isn’t a quick fix, but it is worth it.
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It took me three years of focused effort to establish a six-month buffer in my account, and the peace of mind that created is a huge piece of my financial freedom.
While unreliable income can be frustrating, there are plenty of positives for being an entrepreneur. Unlike the fixed salaries in corporate roles, entrepreneurs have an uncapped income potential, so make sure you’re taking advantage of that from the very beginning.
Plan for growth by incrementing revenue goals annually. Avoid the trap of charging by the hour and instead focus on value-based pricing.
Financial freedom looks different for everyone. It could mean taking regular time off, having substantial savings, or investing in other ventures. Some people are driven by material acquisitions, while others prefer simpler living.
For me, it’s about having peace of mind and knowing I can take time away from the business without financial stress.?
Whatever your goals may be, the essence of financial freedom lies in having choice and stability which empowers you to explore new ideas and services, elevating your business beyond mere survival.
Financial Freedom doesn’t just happen, it takes a lot of work and a well-planned strategy. This week, I challenge you to review your numbers and create a routine that includes regular “dates” to review your approach and stay on top of your goals!
LINKS
For a copy of Emma's book, 'Go-getter: Raise your mojo, shift your mindset and thrive' – https://www.emmamcqueen.com.au/book/